Oil drops to $105/barrel

The price of oil has fallen to $105 per barrel as some industry pundits anticipate that the Federal Reserve might lighten up on its closely-watched stimulus program.

At the same time, gas prices at the pump are now are less than they were one year ago.

The benchmark crude for September fell $1.26 to close at $105.30 per barrel on the New York Mercantile Exchange.

These developments occur as  members of the Federal Reserve have said that the central bank may be close to reducing its bond-buying program that has kept long-term interest rates low and potentially boosted investment in riskier assets, such as  stocks and oil.

Category: Fuel & Oil, General Update